Checking out the fundamentals behind Nano Dimension stock
Nano Dimension Ltd. (NASDAQ:NNDM) is a provider of intelligent machines for the fabrication of Additively Manufactured Electronics, which are essential enablers of autonomous intelligent drones, cars, satellites, smartphones, and in medical devices. Nano Dimension is most well-known for its 3-D printing machines. Nano Dimension remains a small company with just 75 full-time employees and was founded in 2012 in Ness-Ziona, Israel.
Nano Dimension's market cap recently surpassed the $1.4 billion mark. So far in 2020, NNDM stock price has soared an exciting 277%, most of which came within the last three months. Even further, just this morning the equity hit a fresh annual high of $10.49.
Nano Dimension's reported revenue and earnings per share (EPS) came in far below Wall Street's expectations in the company's latest earnings report, but this had little effect on NNDM stock price as the company is still in its early growth stage. Nano Dimension stock reported earnings of -$0.45 per share, missing expectations by $0.37. NNMD also generated $438,000 in revenue last quarter, falling short of its expected of $1.2 million for the third quarter of 2020.
Furthermore, Nano Dimension grew its annual revenue from $45,000 to $7 million between 2016 and 2019. Unfortunately, NNDM has seen its revenue slashed by more than half in 2020. The company also has growing net losses, which is to be expected at its current early stage. In contrast, Nano Dimension has an impressive balance sheet with relatively healthy cash and debt amounts. NNDM has $37.32 million in cash, and its total debt stands at a manageable $1.83 million.
Overall, the risk-reward potential remains very attractive despite Nano Dimension stock’s recent explosive growth. There is strong potential that Nano Dimension stock will remain a strong speculative play.